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Have you ever thought of considering savings as an expense? No? Are you one of those people that saves up whatever is left after everything else? Yes? Do you have times when you don’t get to save up any amount at all? Do you promise to save and end up spending it anyway? Do you want to start trying again? Read away!

We tend to take savings for granted. We try to save whatever is left instead of the other way around. Here’s a few simple steps in saving wisely:

1. Save First. Based on your income/allowance, how much can you set aside for savings? Figure out a fixed amount allotted just for savings.

2. Consider it an Expense. Just like rent, electricity, phone bills, etc. (see Moolah Management: The Basics), treat savings as part of your expenses. Like it is something that has to be paid for.

3. Stick to your Budget. Not because you see unused cash on your “Savings” envelope, doesn’t mean you have more to spend. Remember, that money has already been spent. Consider it money forgotten/ignored.

4. Start Small. You don’t have to oblige yourself to save half of what you earn (but if you can, save away!) and go hungry. Saving Php 500/SAR 50/USD 15 regularly (every month) is better than having no savings at all.

5. No Cheating. Do not tell yourself “I’m gonna use my savings for this month and I promise to pay it back next month” Never miss a day or month in setting aside an amount for savings. You’ll be surprised at the end of the year how much you’ve saved up. The same thing goes if you start missing out, you’ll be surprised of how much you don’t have. Save religiously.

6. Lock it up. If possible, put your savings straight to your bank account or put it some place that only you know about. That way, you won’t be tempted to spend it. For me, I opened a separate bank account for savings only so I don’t mix up my cash for spending and saving.

You can try these not only for safe keeping but also for saving up for something you want for the future. (e.g. travel, shopping spree, a new phone, or even a house, etc.)

Think about it before you get that January paycheck. Spend wisely, spend on savings! 🙂